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Assignment 1

Question 1
Ellie works for a medium-sized family-owned firm. Her majority income found on bonuses, and the bonuses were based on the final avail of the function centre. Ellie was not satisfied with this arrangement. According to the information, now I dissolve the three questions.

Answer A.
down-to-earth Profit = Revenue -  salute of goods interchange 
final examination Profit = Revenue - Cost of goods sold - Overhead - Interest Payable
 = Gross Profit - Overheads - Interest Payable
Gross clear or realize revenue enhancement profit is the total earning that a business made after deducting represents work outly utilize to generate this simoleons. The costs atomic number 18 direct materials cost and direct labor costs. In the other words, sales profit or gross profit is the remaining revenue after deducting cost of goods sold (COGS) before deducting payroll, overhead, taxation and interest write down. Note that sales profit and gross profit is different with operating profit (earnings before taxation and interest) because sales profit or gross profit is only deduct cost of goods sold (COGS) from revenue but operating profit deduct operating expense (including COGS and overhead) as a whole from operating revenue (start-investing 2009).




Final profit or crystallise profit is actual profit for the company after deducting all the expenses from total revenue in the given financial point of time. Final profit or net profit is also referred as net earnings since it is the actual income or earnings after deducting all the expenses much(prenominal) as cost of goods sold (COGS), interest payable ,overhead positivist/minus one off items for a financial period (usually one year) . If the outcome of final profit or net profit is negative lick after deducting all the expenses, whence it is called net loss (start-investing 2009).
Therefore, as the gross sales are in control of the sales team and responsibility centers, the figure fluctuation of the gross profit is a better index medium in showing the responsibilitys effort and successfulness...If you want to stool a full essay, order it on our website: Orderessay



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